Reinforce Financial Concepts

Hello blog readers I’m back on the road again after a break. I’ve been in Austin, Texas this week and next week I will be in Washington DC so stand by for some finance training excitement.

I sure got my Texas mug on this week. I got a nice 6 mile run in outside one morning and probably lost 5 pounds. Yes, it’s summer in Texas and very humid. The visit was nice overall, I always enjoy training EA – smart people and great material. On this visit I especially enjoyed conducting the game Duality. It’s a great game developed by the EA training group LEAP…yes it’s an acronym but don’t ask what it stands for. This game asks the attendees to develop a game and go through the EA development process. As they play the cards in Duality they adjust the units projected to be sold, the online revenues the game generates, and the costs. They also track the quality, risk, and health of the team developing the game. It’s actually a pretty comprehensive, well done game and the attendees love it. I serve as the division general manager when Andy is not around and review the progress of the team. It’s a great way to reinforce the concepts I teach. When you practice what you are learning you will better understand the financial concepts you’re studying.

EA continues to have great numbers. In their new fiscal year, they are planning to crossover the $5 billion revenue line. They plan to have free cash flow in the $1.2 billion-dollar range. Margins are strong and the stock shows it. It’s been nice to watch this company transform its business model by moving to in house or acquired IP and digital games. Over the years I’ve worked with EA I’ve seen the gross profit margin move from 50% to almost 75% projected for FY 2018.

With the great cash flow and finally a bit of revenue growth, the stock has moved above $100. That’s quite a jump from as low as $12 seven to eight years ago. It’s been a nice story for the EA executive team. I’m sure quality finance training also played a key role…

I had three good meals in Austin. You can always get good food here. First night was Fonda San Miguel, a nice upscale Mexican place. I had the carne asada steak medium rare with a mole’ cheese enchilada, very nice. Second night was the Clay Pit, near the University of Texas campus, I had tiki masala curry beef spicy with papadum, pretty good. Then finally I was told by the class to go to Rudy’s Country Store and BBQ for some good old Texas BBQ. I recommend the moist brisket. Very impressive and low key.

Do you need financial statements training? Contact us at 818-591-5955 to talk about scheduling a training session.

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